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Guide

Gusto vs Wave payroll in 2026

Pick Gusto if you have a W-2. Pick Wave if you need a $0 file. Do not buy Wave “payroll” to avoid a $55 Simple bill unless the live Wave page is a real full-service product you verified.

By Gregory GreensteinUpdated September 20, 2026Affiliate disclosure

Verdict

Pick Gusto if you have — or are about to have — a US W-2 and want published full-service filings. Pick Wave if you are still a 1099 or sole prop who needs invoices and a bank feed at $0. Do not treat Wave as a Gusto competitor because both logos appear in “small business software” roundups. One is payday. One is books.

Wave has marketed payroll-adjacent products in some periods and regions. We will not freeze a stale “Wave payroll $20” blog figure. If waveapps.com currently sells US full-service payroll, read that live SKU next to Gusto Simple and compare filings, states, and support — then still model Gusto. Historically, Wave’s strength is the free ledger, not the employer stack. See Is Wave worth it and Is Gusto worth it.

Two jobs

Gusto’s job is withhold, deposit, file, W-2s, 1099s, benefits next door. Setup is a Tuesday night. Simple is single-state. Plus is the second state. Contractor Only is $35 + $6 if they are actually contractors. How to choose payroll for your first employee is the process. Payroll-tax mistakes is what Gusto will not catch for you.

Wave’s job is a $0 general ledger and invoices. Pro is $19/month or $190/year for extras. Payments are processing. It is the year-one file on side-hustle bookkeeping and 1099 contractor accounting. It is not an HRIS and not our default first-hire payday. If you hire and stay on Wave for books, pair Gusto — two products, two jobs.

Public pricing as of September 21, 2026

Gusto: Simple $49 + $6, Plus $80 + $12, Premium $180 + $22, Contractor Only $35 + $6. One employee Simple: $55/month. Ten employees: $109. Confirm gusto.com/product/pricing.

Wave: Starter books and invoicing $0; Pro $19 or $190/year. Confirm waveapps.com/pricing. Any payroll add-on: confirm the live page and whether it is full-service US filings or a connector. We will not invent the SKU.

  • First W-2, one state: Gusto $55 vs Wave $0 ledger + a real payroll product.
  • Ten W-2s: Gusto Simple $109 vs a quote or OnPay $109. Wave is still the books, not the payday, unless you verified otherwise.
  • No employees: Wave $0. Gusto is a waste.

Who should pick which

  • 1099 only, will reconcile: Wave. See when to leave spreadsheets.
  • First W-2: Gusto Simple. See first-hire stack.
  • Register already Square: Square Payroll, Wave or QBO for books.
  • CPA asked for QBO: QBO + Gusto. Wave can wait.
  • You need a PEO: Justworks, not Wave.

Frequently asked questions